FundFire: Endowments Turn to Hedge Funds as Markets Swing

May 29, 2018 / by NEPC

Endowments and foundations may be turning back to hedge funds as they expect heightened market volatility to stick around for a while, according to NEPC’s most recent endowment and foundation survey.

But, recent market swings have 80.9% of endowments and foundations surveyed by NEPC wary of a longer-term trend of volatility, the survey says. And 49% of the 47 endowments and foundations that took NEPC’s survey believe that hedge funds will likely benefit from the potential longer-term trend of market volatility.

“They need to look for higher sources of return and are looking more in the alternative markets,” says Cathy Konicki, a partner at NEPC, who says hedge funds should be able to provide those returns in times of heightened volatility.

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Topics: Endowments & Foundations, Press Coverage


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